Help please re gifted deposit

henrypootle

Brief overview of situation - we are in the process of selling our property, estimated completion 19th July to a FTB.
There's one property on the market which we really like and we know that there is already an offer on the table of the asking price. Its a bit over our budget so I spoke to my dad who said he could give us £15,000 so that we would be in a position to offer just over (on at £260,000 we could then offer £262,000). We may well still miss out on the house but we're not able to go anything over that. They've agreed to a second viewing later in the week which is giving us a bit more time to get organised fortunately. Our mortgage would be for £167,000 and the remaining comes from the equity in our current property


To be honest I didn't think anything of it until I started reading on the internet about gifted deposits and now I'm panicking! Am I right in thinking that it can cause problems with the process? Do all solicitors charge extra for dealing with such cases? Where am I best getting advice from? We are currently using one of the online conveyancing firms for the sale of our house, our current mortgage is with Nationwide and we were going to continue with them - have a DIP from them.


Can anyone help?

Pixie5740

Ask your conveyencer if they charge extra for dealing with gifted deposits. As for Nationwide, they will probably just ask your father to sign a document declaring that it is in fact a gift.

kingstreet

It's a simple one form process with Nationwide.

I don't know of many solicitors charging more. You'll have to ask/shop around.

ReadingTim

It shouldn't be too much of a problem - my parents helped me and it just required a short letter signed by them stating that the sum was a gift, with no expectation of repayment, nor interest in the property I was purchasing, and that did the trick.

I can't remember whether I needed to provide it to the solicitor or the mortgage provider, but it didn't cause an issue, not did it hold up proceedings. However, your solicitor and mortgage broker are the people to ask once you've engaged them.

I suspect the problems arise when the "gift" isn't actually a gift (more like a loan), or the amount is such that it necessitates anti-money laundering checks, which prove difficult to comply with.

Assuming your Dad is happy to give you the money, and has bank statements showing it sitting there for the last 2-3 years, I don't think it will be a problem....the bank of mum and dad is a pretty big lender these days, sadly.

LuckyG

I've recently got a mortgage with Nationwide with a part gifted deposit. As others have said, the person giving the gift has to complete a basic form.
No issues at all.

parking_question_chap

Simple usually.

They will want it in writing that its a gift. Basically the bank will not want somebody else to claim partial ownership further down the line.

henrypootle

Thanks everyone - I just panicked a touch there as I didnt know anything about it...

sheff6107

Most FTBs have gifted deposits.
It's no issue at all